Stock Market Today: Ciena Soars and J.M. Smucker Slides

Stocks are set for another push into record territory today. Already sitting at an all-time high, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) has gained 44 points in pre-market trading, suggesting a positive start for the stock market this morning. World shares were in the green overnight, led by a 0.8% gain in Europe's Stoxx index.

Meanwhile, news is breaking on Ciena (NYSE: CIEN  ) and J.M. Smucker (NYSE: SJM  ) stocks, which should both see heavy trading today after delivering their quarterly numbers.

Networking equipment maker Ciena this morning booked higher than expected profit and sales for its fiscal second quarter. Earnings of $0.17 a share were ahead of the $0.13 that analysts had targeted, and revenue of $560 million also surprised to the upside. CEO Gary Smith said in a press release that those strong numbers were "a direct result of our expanding role and reach in the industry" as customers are increasingly opting for on-demand networking modules. Investors should be impressed with Ciena's growing profitability: adjusted operating margin climbed to 6.2%, which was significantly higher than last year's 3.7% haul. Ciena forecast even bigger gains ahead for the year, with sales of roughly $600 million next quarter, well above the $580 million that analysts projected. The stock was up 15.6% in pre-market trading.   

J. M. Smucker today posted an 8% slide in revenue as falling coffee prices hit both its top and bottom lines. Sales clocked in at $1.2 billion in its fiscal fourth quarter after being swamped by a 12% dive in its Folgers coffee business, which had slightly higher volume but a much lower average selling price. Still, overall earnings fell at a slower pace, down 6% to $1.21 a share as cost reductions and share repurchases helped protect profit. Wall Street analysts were expecting sales of $1.24 billion and earnings of $1.16 a share. In a press release, CEO Richard Smucker touted the company's success in delivering increasing returns to shareholders for the full year, saying, "these accomplishments are a product of our long-term, forward-looking growth strategy, the strength of our iconic brands, an aggressive pipeline, and the commitment and perseverance of our team." J.M. Smucker expects a rebound in sales growth starting next quarter as a new coffee price increase kicks in. The stock was unchanged in pre-market trading.

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  • Report this Comment On June 05, 2014, at 9:54 AM, anindakumars wrote:

    Its sad to see there is no one discussing CIEN on TMF. I commented on an article yesterday that this is a steal below 20. I can see it touching 25 in a few weeks unless the overall market goes down.

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